diff --git a/app/Livewire/Server/New/ByIp.php b/app/Livewire/Server/New/ByIp.php
index f5ea2ae80..a85306f6b 100644
--- a/app/Livewire/Server/New/ByIp.php
+++ b/app/Livewire/Server/New/ByIp.php
@@ -3,6 +3,7 @@
 namespace App\Livewire\Server\New;
 
 use App\Enums\ProxyTypes;
+use App\Models\PrivateKey;
 use App\Models\Server;
 use App\Models\Team;
 use App\Rules\ValidServerIp;
@@ -84,11 +85,51 @@ protected function messages(): array
         ]);
     }
 
+    public function getListeners(): array
+    {
+        return [
+            'privateKeyCreated' => 'handlePrivateKeyCreated',
+        ];
+    }
+
     public function setPrivateKey(string $private_key_id)
     {
         $this->private_key_id = $private_key_id;
     }
 
+    public function generatePrivateKey(string $type): void
+    {
+        try {
+            $this->authorize('create', PrivateKey::class);
+
+            if (! in_array($type, ['ed25519', 'rsa'], true)) {
+                $this->dispatch('error', 'Invalid private key type.');
+
+                return;
+            }
+
+            $keyData = PrivateKey::generateNewKeyPair($type);
+            $privateKey = PrivateKey::createAndStore([
+                'name' => $keyData['name'],
+                'description' => $keyData['description'],
+                'private_key' => $keyData['private_key'],
+                'team_id' => currentTeam()->id,
+            ]);
+
+            $this->handlePrivateKeyCreated($privateKey->id);
+            $this->dispatch('success', 'Private key created successfully.');
+        } catch (\Throwable $e) {
+            handleError($e, $this);
+        }
+    }
+
+    public function handlePrivateKeyCreated($keyId): void
+    {
+        $this->private_keys = PrivateKey::ownedAndOnlySShKeys()->where('id', '!=', 0)->get();
+        $this->private_key_id = $keyId;
+        $this->resetErrorBag('private_key_id');
+    }
+
     public function instantSave()
     {
         // $this->dispatch('success', 'Application settings updated!');
diff --git a/resources/views/livewire/server/new/by-ip.blade.php b/resources/views/livewire/server/new/by-ip.blade.php
index e41342ca2..39d9ca0fe 100644
--- a/resources/views/livewire/server/new/by-ip.blade.php
+++ b/resources/views/livewire/server/new/by-ip.blade.php
@@ -16,16 +16,65 @@
             <div class="text-xs dark:text-warning text-coollabs ">Non-root user is experimental: <a
                     class="font-bold underline" target="_blank"
                     href="https://coolify.io/docs/knowledge-base/server/non-root-user">docs</a>.</div>
-            <x-forms.select label="Private Key" id="private_key_id">
-                <option disabled>Select a private key</option>
-                @foreach ($private_keys as $key)
-                    @if ($loop->first)
-                        <option selected value="{{ $key->id }}">{{ $key->name }}</option>
-                    @else
-                        <option value="{{ $key->id }}">{{ $key->name }}</option>
-                    @endif
-                @endforeach
-            </x-forms.select>
+            <div class="flex items-end gap-2">
+                <div class="grow">
+                    <x-forms.select label="Private Key" id="private_key_id">
+                        <option disabled>Select a private key</option>
+                        @foreach ($private_keys as $key)
+                            <option value="{{ $key->id }}">{{ $key->name }}</option>
+                        @endforeach
+                    </x-forms.select>
+                </div>
+                @can('create', App\Models\PrivateKey::class)
+                    <div x-data="{ dropdownOpen: false }" class="relative w-fit" @click.outside="dropdownOpen = false">
+                        <x-forms.button isHighlighted @click="dropdownOpen = !dropdownOpen" type="button">
+                            + Add
+                            <svg class="w-4 h-4 ml-2" xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24"
+                                stroke-width="1.5" stroke="currentColor">
+                                <path stroke-linecap="round" stroke-linejoin="round"
+                                    d="M8.25 15L12 18.75 15.75 15m-7.5-6L12 5.25 15.75 9" />
+                            </svg>
+                        </x-forms.button>
+
+                        <div x-show="dropdownOpen" @click.away="dropdownOpen=false" x-transition:enter="ease-out duration-200"
+                            x-transition:enter-start="-translate-y-2" x-transition:enter-end="translate-y-0"
+                            class="absolute right-0 top-0 z-50 mt-10 min-w-max" x-cloak>
+                            <div
+                                class="p-1 mt-1 bg-white border rounded-sm shadow-sm dark:bg-coolgray-200 dark:border-coolgray-300 border-neutral-300">
+                                <div class="flex flex-col gap-1">
+                                    <a class="dropdown-item" wire:click="generatePrivateKey('ed25519')"
+                                        @click="dropdownOpen = false">
+                                        <svg class="size-4" fill="none" stroke="currentColor" viewBox="0 0 24 24">
+                                            <path stroke-linecap="round" stroke-linejoin="round" stroke-width="2"
+                                                d="M12 4.5v15m7.5-7.5h-15" />
+                                        </svg>
+                                        Generate ED25519
+                                    </a>
+                                    <a class="dropdown-item" wire:click="generatePrivateKey('rsa')" @click="dropdownOpen = false">
+                                        <svg class="size-4" fill="none" stroke="currentColor" viewBox="0 0 24 24">
+                                            <path stroke-linecap="round" stroke-linejoin="round" stroke-width="2"
+                                                d="M12 4.5v15m7.5-7.5h-15" />
+                                        </svg>
+                                        Generate RSA
+                                    </a>
+                                    <x-modal-input title="Add Private Key Manually">
+                                        <x-slot:content>
+                                            <div class="dropdown-item" @click="dropdownOpen = false">
+                                                <svg class="size-4" fill="none" stroke="currentColor" viewBox="0 0 24 24">
+                                                    <path stroke-linecap="round" stroke-linejoin="round" stroke-width="2"
+                                                        d="M12 4.5v15m7.5-7.5h-15" />
+                                                </svg>
+                                                Add manually
+                                            </div>
+                                        </x-slot:content>
+                                        <livewire:security.private-key.create :modal_mode="true" from="server" />
+                                    </x-modal-input>
+                                </div>
+                            </div>
+                        </div>
+                    </div>
+                @endcan
+            </div>
             <div class="">
                 <x-forms.checkbox instantSave type="checkbox" id="is_build_server"
                     helper="Build servers are used to build your applications, so you cannot deploy applications to it."
diff --git a/tests/Feature/NewServerPrivateKeySelectionTest.php b/tests/Feature/NewServerPrivateKeySelectionTest.php
new file mode 100644
index 000000000..b1d77266a
--- /dev/null
+++ b/tests/Feature/NewServerPrivateKeySelectionTest.php
@@ -0,0 +1,93 @@
+<?php
+
+use App\Livewire\Server\New\ByIp;
+use App\Models\InstanceSettings;
+use App\Models\PrivateKey;
+use App\Models\Team;
+use App\Models\User;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+use Illuminate\Support\Facades\Storage;
+use Livewire\Livewire;
+use Visus\Cuid2\Cuid2;
+
+uses(RefreshDatabase::class);
+
+beforeEach(function () {
+    config(['app.maintenance.driver' => 'file']);
+    Storage::fake('ssh-keys');
+
+    InstanceSettings::forceCreate(['id' => 0, 'is_api_enabled' => true]);
+
+    $this->team = Team::factory()->create();
+    $this->user = User::factory()->create();
+    $this->team->members()->attach($this->user->id, ['role' => 'owner']);
+
+    session(['currentTeam' => $this->team]);
+
+    $this->actingAs($this->user);
+
+    $this->existingPrivateKey = PrivateKey::withoutEvents(fn () => PrivateKey::forceCreate([
+        'uuid' => (string) new Cuid2,
+        'name' => 'Existing SSH Key',
+        'description' => 'Existing SSH Key',
+        'private_key' => 'test-private-key',
+        'team_id' => $this->team->id,
+    ]));
+});
+
+it('generates and preselects a new private key without clearing server form data', function () {
+    $component = Livewire::test(ByIp::class, [
+        'private_keys' => collect([$this->existingPrivateKey]),
+        'limit_reached' => false,
+    ])
+        ->set('name', 'Production Server')
+        ->set('description', 'Deploy target')
+        ->set('ip', '192.0.2.50')
+        ->set('user', 'deploy.user')
+        ->set('port', 2222)
+        ->set('is_build_server', true)
+        ->call('generatePrivateKey', 'ed25519')
+        ->assertHasNoErrors()
+        ->assertSet('name', 'Production Server')
+        ->assertSet('description', 'Deploy target')
+        ->assertSet('ip', '192.0.2.50')
+        ->assertSet('user', 'deploy.user')
+        ->assertSet('port', 2222)
+        ->assertSet('is_build_server', true);
+
+    $newPrivateKeyId = $component->get('private_key_id');
+
+    expect($newPrivateKeyId)->not->toBe($this->existingPrivateKey->id)
+        ->and(PrivateKey::find($newPrivateKeyId))->not->toBeNull()
+        ->and($component->get('private_keys')->pluck('id'))->toContain($newPrivateKeyId);
+});
+
+it('preselects a manually added private key without clearing server form data', function () {
+    $manualPrivateKey = PrivateKey::withoutEvents(fn () => PrivateKey::forceCreate([
+        'uuid' => (string) new Cuid2,
+        'name' => 'Manual SSH Key',
+        'description' => 'Manual SSH Key',
+        'private_key' => 'manual-test-private-key',
+        'team_id' => $this->team->id,
+    ]));
+
+    Livewire::test(ByIp::class, [
+        'private_keys' => collect([$this->existingPrivateKey]),
+        'limit_reached' => false,
+    ])
+        ->set('name', 'Production Server')
+        ->set('description', 'Deploy target')
+        ->set('ip', '192.0.2.51')
+        ->set('user', 'deploy.user')
+        ->set('port', 2222)
+        ->set('is_build_server', true)
+        ->call('handlePrivateKeyCreated', $manualPrivateKey->id)
+        ->assertSet('private_key_id', $manualPrivateKey->id)
+        ->assertSet('name', 'Production Server')
+        ->assertSet('description', 'Deploy target')
+        ->assertSet('ip', '192.0.2.51')
+        ->assertSet('user', 'deploy.user')
+        ->assertSet('port', 2222)
+        ->assertSet('is_build_server', true)
+        ->assertSee('Manual SSH Key');
+});